Buying a home in Washington usually moves fast. A buyer tours a house on Saturday, a broker drafts an offer on the Northwest Multiple Listing Service form that evening, and by Monday there is a binding contract with deadlines already running. Holmes Law works with buyers as a Washington residential purchase attorney, reviewing the purchase and sale agreement before it is signed, explaining what the contingencies actually protect, and making sure title is taken in a way that fits the buyer’s marriage, estate plan and long-term goals.
Washington is different from many states in how a closing works. There is no custom of each side hiring a lawyer to attend the closing; instead an escrow company or a Limited Practice Officer handles the paperwork, and the brokers drive the timeline. That system works well most of the time, but it means nobody at the table is advising the buyer on legal risk unless the buyer asks for it. Michael Holmes is admitted in Washington and works remotely with buyers throughout the state, from Seattle and the Eastside to Spokane, Vancouver, Olympia and the Tri-Cities. This page is general information, not legal advice for your purchase. For the broader practice area, see the Washington real estate page.
How a Washington Home Purchase Closes: Escrow, Title and Limited Practice Officers
Washington is often described as an escrow state. After the purchase and sale agreement is signed, the parties choose a closing agent, usually an escrow company or the escrow department of a title insurer. The closing agent holds the earnest money if the contract says so, collects the loan documents, prepares the settlement statement, records the deed and pays the seller once the transaction funds.
Much of that document preparation is done by Limited Practice Officers. The Washington Supreme Court created the LPO license under Admission and Practice Rule 12 so that non-lawyers can select, prepare and complete certain approved documents, such as deeds and deeds of trust, for a closing. An LPO is neutral. An LPO does not negotiate for the buyer, does not advise on whether a contingency should be waived, and does not tell a married buyer how to vest title. That is the gap a Washington residential purchase attorney fills: reviewing the contract before signing, spotting problems in the title commitment, and answering the “what if” questions that come up between mutual acceptance and closing.
Title insurance is issued by Washington title companies, and the buyer receives a preliminary commitment early in the transaction. Reading the commitment carefully matters. It lists the recorded easements, covenants, liens and exceptions that the policy will not cover, and it is the buyer’s best early warning about access problems, encroachments, unreleased deeds of trust or restrictive covenants.
The NWMLS Purchase and Sale Agreement and Its Addenda
In most Washington markets the offer is written on NWMLS Form 21, the residential purchase and sale agreement, with addenda for financing, inspection, optional clauses and other issues. Some local associations use their own forms, but the structure is similar. These forms are carefully drafted and widely understood, which is a real advantage. They are also dense, full of default rules that apply unless a box is checked, and easy to misread under time pressure.
Points buyers most often overlook include:
- Default deadlines. Many periods run in days from mutual acceptance, and some notices are deemed given if the buyer does nothing. Missing a notice deadline can convert a contingency into a waiver.
- The possession date. Possession on closing is common, but rent-backs and early occupancy change the risk allocation and should be documented properly.
- The included items and fixtures. Disputes over appliances, window treatments and equipment are avoidable with a clear list.
- Title and survey terms. The form addresses what title exceptions a buyer must accept. A buyer who needs a survey should say so up front.
- Dispute resolution and attorney fee provisions, which can shift the cost of a later disagreement.
A short legal review before the offer goes out, or during the inspection period, is often enough to catch the terms that matter for a particular buyer.
What a Washington Residential Purchase Attorney Looks for in Contingencies: Inspection, Financing, Appraisal and Sale of the Buyer’s Home
Contingencies are the buyer’s exits. In a competitive Washington market buyers are often pressured to shorten or waive them, and that is a legitimate negotiating choice only if the buyer understands what is being given up.
Inspection
The inspection contingency gives the buyer a period to hire a home inspector and, commonly, sewer scope, pest, oil tank, radon or other inspectors. Western Washington has many older homes that were once heated with oil, and buried tanks can be a costly surprise. Septic systems, private wells, drainfields and shared well agreements are common in rural counties. The contingency typically lets the buyer terminate or propose repairs within a set time. If the buyer does not act inside that window, the right can be lost.
Financing and appraisal
A financing contingency protects a buyer who cannot obtain the loan described in the contract. Whether it also protects against a low appraisal depends on how the addendum is completed. Buyers who waive financing or appraisal protection may still lose their earnest money if the loan falls through.
Sale of the buyer’s current home
A contingency on the sale of the buyer’s existing home is less attractive to sellers but can be essential for buyers who need the equity. The form sets out how a seller can keep marketing the property and require the buyer to waive or terminate.
Earnest Money and the Five Percent Cap Under RCW 64.04.005
Earnest money shows good faith and gives the seller something to keep if the buyer defaults. Washington regulates this directly. Under RCW 64.04.005, a written purchase and sale agreement may provide that forfeiture of the earnest money is the seller’s sole and exclusive remedy if the buyer fails to complete the purchase, and the amount forfeited as liquidated damages may not exceed five percent of the purchase price. The statute defines earnest money broadly to include cash, checks, promissory notes and other things of value.
In practice, the Washington forms usually give the seller a choice between keeping the earnest money as liquidated damages or pursuing other remedies, depending on how the agreement is completed. Buyers should know which option they have agreed to, how much is at risk, and when the deposit becomes nonrefundable. A buyer who terminates properly under a contingency is generally entitled to the deposit back; a buyer who misses the notice deadline may not be.
What the Seller Must Disclose: RCW 64.06 and Form 17
Washington requires most sellers of residential real property to deliver a seller disclosure statement under chapter 64.06 RCW. The statutory form, commonly called Form 17 in the NWMLS system, asks about title, water, sewer and septic, structural issues, systems and fixtures, the common interest community, environmental conditions, lead-based paint and manufactured homes, among other topics.
Three points about the disclosure statute matter most for a buyer:
- The buyer’s rescission right. Under RCW 64.06.030, a buyer has three business days after the seller delivers the disclosure statement to rescind the agreement by written notice, unless that right has been waived. When the statement arrives after mutual acceptance, that short window is the buyer’s chance to walk away without relying on a contingency.
- Actual knowledge. Under RCW 64.06.050, the seller is not liable for errors, inaccuracies or omissions in the disclosure statement unless the seller had actual knowledge of them. The statement is not a warranty, and it does not replace an inspection.
- Exempt transfers. RCW 64.06.010 exempts certain sales, including foreclosures, transfers between family members, and transfers made by a personal representative of a decedent’s estate or by a trustee in bankruptcy. A buyer purchasing from an estate may receive little or no disclosure and should inspect accordingly.
Washington courts have also limited buyers’ ability to sue in tort for defects that are really contract claims. After cases such as Alejandre v. Bull, 159 Wn.2d 674 (2007), and Eastwood v. Horse Harbor Foundation, 170 Wn.2d 380 (2010), a buyer’s remedies for a concealed defect depend heavily on what was said, what was inspected and what the contract provides. That is another reason to take the inspection period seriously.
Taking Title: Community Property, Joint Tenancy and Trusts
How a buyer takes title is a legal decision with long-lasting consequences, and it is one the escrow officer cannot make for you.
Community property and the joinder rule
Washington is a community property state. Property acquired during marriage or a registered domestic partnership is presumed to be community property. Under RCW 26.16.030, neither spouse may purchase or contract to purchase community real property without the other spouse joining in the transaction, and neither may sell, convey or encumber community real property without the other joining in the deed or instrument. When only one spouse signs the offer, the other spouse’s joinder must be obtained before the transaction proceeds.
Where one spouse is buying with separate funds, such as an inheritance or pre-marriage savings, the deed, the source of funds and any written agreement between the spouses all matter. A written marital agreement can document the intended character of the property clearly.
Joint tenancy with right of survivorship
Washington does not recognize tenancy by the entirety. Unmarried co-buyers commonly choose between tenancy in common and joint tenancy. Under RCW 64.28.010, a joint tenancy must be created in writing and expressly declare the interest to be a joint tenancy. Joint tenancy avoids probate on the first death, but it can conflict with an estate plan and is not always the right choice for blended families.
Vesting in a trust or using a TOD deed
Many buyers take title in the name of a revocable living trust so the home passes without probate. Lenders sometimes require the loan to close in the buyer’s individual names, with a deed into the trust afterward. Washington also permits transfer on death deeds under chapter 64.80 RCW, which let an owner name a beneficiary who takes the property at death without probate. Either tool should be coordinated with the rest of the plan; the Washington trusts page explains the trade-offs.
Condominiums, HOAs and the Resale Certificate
Buyers of condominium units and homes in planned communities inherit a set of covenants, assessments and association rules. Washington’s modern statute is the Washington Uniform Common Interest Ownership Act, chapter 64.90 RCW. Older communities have been governed by the Condominium Act (chapter 64.34 RCW), the Homeowners’ Association Act (chapter 64.38 RCW) or the older Horizontal Property Regimes Act, but beginning January 1, 2028, chapter 64.90 RCW is scheduled to apply to common interest communities regardless of when they were created.
Under RCW 64.90.640, a unit owner selling in a covered community must furnish a resale certificate from the association. It discloses assessments and delinquencies, the budget and financial statements, the status of reserves, insurance, pending litigation, rental and use restrictions and other items. If the certificate is first provided to the buyer five business days or less before the buyer signs the contract, the buyer may cancel by notice delivered no later than the fifth business day after first receiving it, before conveyance.
Buyers should read the resale certificate for special assessments, underfunded reserves, rental caps, pet and use restrictions, and litigation, particularly construction defect claims in condominiums.
Property Taxes, Excise Tax and Closing Costs
Washington property tax is assessed by the county assessor and collected by the county treasurer. Taxes are prorated at closing. Washington limits how much taxing districts may increase their regular levies each year under chapter 84.55 RCW, but an individual owner’s bill can still rise because of voter-approved levies and changes in assessed value. Seniors and people with disabilities who meet the income thresholds may qualify for a property tax exemption or deferral under RCW 84.36.381 and related statutes.
The real estate excise tax (REET) under chapter 82.45 RCW is imposed on the sale, and by custom and by the NWMLS form the seller usually pays it, though the buyer is responsible if the seller does not. The state rate is graduated by price bands, and cities and counties add local REET. Buyers should budget for their own closing costs, including title insurance, escrow fees, recording fees and lender charges, which are shown on the closing disclosure.
Homestead Protection After You Buy
Once a buyer moves in, Washington’s homestead exemption under chapter 6.13 RCW protects some equity from most judgment creditors. Under RCW 6.13.030, the exemption is the greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year. The homestead protection does not defeat a mortgage or deed of trust the owner signed, and it has other exceptions, but it is meaningful protection for many families.
When to Involve a Washington Residential Purchase Attorney
Not every purchase needs extensive legal work. The most valuable times to involve counsel are:
- Before signing, when the buyer is asked to shorten or waive contingencies.
- When the property involves a septic system, private well, shared driveway, easement, boundary question or unusual title exception.
- When buying from an estate, a trust, a bankruptcy trustee or a relative.
- When buying with a partner, parent or child, or with separate funds during a marriage.
- When the buyer wants to vest title in a trust or coordinate the purchase with an estate plan.
- When a dispute arises before closing about repairs, deadlines or earnest money.
Holmes Law reviews contracts and title documents remotely and can coordinate with your broker and closing agent. If you are also selling, see the Washington residential sales page. Investors buying commercial property should read the Washington commercial purchase page.
Frequently Asked Questions
Do I need a lawyer to buy a house in Washington?
Washington law does not require one, and many closings are handled entirely by an escrow company or Limited Practice Officer. A Washington residential purchase attorney is helpful when the contract terms, title report, financing or family situation raise questions a neutral closing agent cannot answer.
Can I back out after I sign the purchase and sale agreement?
Only on the terms the agreement and statute allow. Contingencies for inspection, financing and other matters create exits within set time periods, and RCW 64.06.030 gives a three-business-day rescission right after delivery of the seller disclosure statement unless waived. Outside those rights, backing out can cost the earnest money.
How much earnest money can the seller keep if I default?
If the agreement makes forfeiture of earnest money the seller’s sole remedy, RCW 64.04.005 caps the forfeited amount at five percent of the purchase price. If the agreement preserves other remedies, the seller may pursue actual damages instead.
Does my spouse have to sign if I am buying in my own name?
If the property will be community property, RCW 26.16.030 requires the other spouse to join in the purchase. If you intend to buy with separate funds as separate property, you should document that carefully rather than rely on how the deed is titled.
Should I buy my home in the name of my trust?
Many buyers do, but the lender may require closing in individual names first. Vesting in a trust or recording a transfer on death deed should be coordinated with your will and trust. See Washington estate planning.
What happens if the seller did not disclose a defect?
Washington sellers are liable for disclosure errors only when they had actual knowledge. Remedies depend on the contract, the disclosure statement, what inspections revealed and the facts of concealment, so prompt legal review is important.
Speak With a Washington Residential Purchase Attorney
A home purchase is usually the largest transaction a family makes. Holmes Law can review your offer, your contingencies and your title commitment before deadlines run, and help you take title in a way that fits your family and your estate plan. Contact Holmes Law to schedule a consultation with Michael Holmes about your Washington home purchase.